By Dave Sims, Commodity News Service Canada
WINNIPEG, August 8 – Canola contracts on the ICE Futures Canada platform were stronger at 10:40 CDT on Monday, tracking gains in vegetable oil.
Large funds have maxed out their positions, according to a Winnipeg-based trader, which he says means they’re not selling in a significant way.
“It’s keeping selling pressure at bay so we’re moving sideways here,” he explained.
Crude oil was also higher which was supportive.
Wet weather in parts of Western Canada has thrown a weather premium into the market.
However, the Canadian dollar was slightly higher relative to its US counterpart, which made canola less attractive to foreign buyers.
The technical bias is pointed slightly to the downside. Any selling could build upon itself, according to a report.
About 4,900 canola contracts had traded as of 10:40 CDT.
Milling wheat, barley and durum were untraded and unchanged.
Prices in Canadian dollars per metric ton at 10:40 CDT:
